CONFORMED COPY Franchise Agreement Docklands Light Railway Limited and Keolis Amey Docklands Limited relating to the Docklands Light Railway 17 July 2014 THV\JMT\D645.00133 CONTENTS CLAUSE PAGE PART I: DEFINITIONS ........................................................................................................... 1 1. DEFINITIONS/INTERPRETATION ................................................................................ 1 1.1 Definitions .............................................................................................................. 1 1.2 Interpretation ........................................................................................................ 30 1.3 Consents in writing ................................................................................................ 31 1.4 Consents reasonably withheld or delayed .................................................................. 31 1.5 DLRL reviews ........................................................................................................ 31 PART II: GRANT OF FRANCHISE ........................................................................................... 33 2. GRANT OF THE FRANCHISE ..................................................................................... 33 2.1 Appointment of Franchisee ...................................................................................... 33 2.2 Franchisee's general obligations ............................................................................... 33 2.3 Franchisee's Risk ................................................................................................... 34 2.4 Franchisee's Due Diligence ...................................................................................... 34 2.5 Disclosed Data ....................................................................................................... 34 2.6 DLRL Disclaimer ..................................................................................................... 35 2.7 No liability for review and approval .......................................................................... 35 2.8 DLRL's general obligation ........................................................................................ 35 3. FRANCHISE COMMENCEMENT .................................................................................. 35 3.1 Entry into Effect ..................................................................................................... 35 3.2 Conditions Precedent .............................................................................................. 35 3.3 Certificate of Franchise Commencement ................................................................... 35 3.4 Termination on non-fulfilment of Conditions Precedent ............................................... 36 4. DURATION OF FRANCHISE ...................................................................................... 36 4.1 Expiry Date ........................................................................................................... 36 4.2 Extension of the Franchise Term .............................................................................. 36 4.3 Financial arrangements for extension ....................................................................... 36 4.4 Key Contracts ........................................................................................................ 36 5. FRANCHISEE'S WARRANTIES/COVENANTS ................................................................ 36 5.1 Franchisee's representations and warranties .............................................................. 36 5.2 Updating of warranties ........................................................................................... 38 5.3 Franchisee's Covenants .......................................................................................... 38 5.4 Restrictions on Activities ......................................................................................... 39 6. DLRL'S WARRANTIES ............................................................................................. 39 PART III: THE FRANCHISE .................................................................................................. 40 7. OPERATIONAL REQUIREMENTS ................................................................................ 40 8. TICKETING ............................................................................................................ 40 9. ASSET MANAGEMENT ............................................................................................. 40 9.1 General Asset Management Obligations .................................................................... 40 9.2 Asset Management Policy and Asset Management Strategy ......................................... 41 9.3 Principal Asset Strategies ........................................................................................ 41 9.4 Maintenance Documents ......................................................................................... 42 9.5 Computerised Asset Management System ................................................................. 43 9.6 Work Bank ............................................................................................................ 44 9.7 Franchisee Asset Management Audits ....................................................................... 45 9.8 DLRL Asset Management Audits ............................................................................... 46 9.9 Command and Control ............................................................................................ 46 9.10 Meetings and Reports ............................................................................................. 47 9.11 Handback ............................................................................................................. 47 9.12 Discrepancies in Maintenance Documents ................................................................. 47 9.13 Monitoring Third Party Maintenance .......................................................................... 48 10. WORKING ON THE RAILWAY ................................................................................... 48 10.1 Working on the Railway Manual ............................................................................... 48 10.2 Access to the Railway ............................................................................................. 49 10.3 Operational Response ............................................................................................. 49 10.4 Projects ................................................................................................................ 49 10.5 Training ................................................................................................................ 51 10.6 Capital Replacement ............................................................................................... 51 11. COMMITTED OBLIGATIONS ..................................................................................... 53 12. CUSTOMER INFORMATION ...................................................................................... 53 13. SITE ..................................................................................................................... 53 13.1 Grant of licence ..................................................................................................... 53 13.2 General provisions in respect of land and the licence .................................................. 54 13.3 Exercise of rights ................................................................................................... 54 13.4 Change to Relevant Documents ............................................................................... 54 13.5 Power ................................................................................................................... 55 13.6 Safeguarding the Railway........................................................................................ 55 13.7 Environmental and Industrial Disease Indemnity ........................................................ 56 14. PERSONNEL .......................................................................................................... 56 14.1 DLRL Manager ....................................................................................................... 56 14.2 Franchisee's Commercial Director ............................................................................ 57 14.3 Key Staff .............................................................................................................. 57 14.4 Franchisee's responsibility ....................................................................................... 59 14.5 Qualified personnel ................................................................................................ 60 14.6 Safety critical work ................................................................................................ 60 14.7 Training ................................................................................................................ 60 14.8 Franchisee Staff Surveys ........................................................................................ 60 15. PENSIONS ............................................................................................................ 60 15.1 Participation in the DLR Pension Scheme................................................................... 60